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American Capital Agency Corp. (AGNC)

- NASDAQ
  • Fri, Aug. 21, 3:30 PM
    • These income favorites often catch a wave of buying when the major averages sell off and yields fall, but the panicky action today is taking down nearly all equities.
    • The iShares DJ U.S. Real Estate ETF (IYR -1.7%) and the iShares FTSE NAREIT Mortgage REIT ETF (REM -1.6%), however, are outperforming the S&P 500's 2.7% decline.
    • Previously: Just a modest rally for Treasurys as stocks crumble (Aug. 21)
    • Leading the mREITs lower is Javelin Mortgage (JMI -5.9%), with SA contributor ColoradoWealthManagementFund noting the company has stopped buying back stock despite its wide discount to book value. The sector as a whole looks like it will continue to have to deal with widening spreads and rising prepayments, and still have a looming rate hike cycle on the horizon.
    • Armour Residential (ARR -2%), CYS Investments (CYS -1.8%), Annaly (NLY -1.2%), American Capital Agency (AGNC -1.8%), Arlington Asset (AI -2.4%), Orchid Island (ORC -2.5%), Dynex (DX -2%), Capstead Mortgage (CMO -1.3%).
    • Equity REITs: Realty Income (O -0.7%), Vereit (VER -2.3%), Health Care REIT (HCN -1%), HCP (HCP -1.1%), Gramercy Property (GPT -3.1%), Equity Residential (EQY -1.6%), Simon Property (SPG -0.5%), Kimco (KIM -2.1%), Hospitality Properties (HPT -2.8%), Stag Industrial (STAG -1.4%), American Campus (ACC -1.1%), Public Storage (PSA -1%).
    | 38 Comments
  • Thu, Aug. 20, 1:41 PM
    • Searching for green as the averages get routed, one finds a few pockets of only modest strength in some of the beaten-down REIT names as the 10-year Treasury yield slips to 2.08% and rate hike expectations move from September to December, or even 2016.
    • Sticking with a September rate hike is the team at Citigroup, which continues to believe only a "bunker buster" will prevent the Fed from hiking next month. The group notes an overlooked line in yesterday's FOMC minutes in which the committee talked about managing the risks resulting from prolonged low rates. It's a "smoking gun," says Citi, meaning a rate hike is coming sooner rather than later.
    • Annaly Capital (NLY +0.2%), American Capital Agency (AGNC +0.6%), Realty Income (O +0.8%), Omega Healthcare (OHI +0.9%), Public Storage (PSA -0.1%).
    | 37 Comments
  • Thu, Aug. 13, 9:52 AM
    • Compass Point joins Nomura in upgrading Annaly Capital (NLY -0.1%) and American Capital Agency (AGNC -0.1%) to Buy, with price targets of $11 and $22, respectively.
    • "The sector valuation, improved fundamentals, combined with a reversal in benchmark interest rates (namely the 10-year UST) and a change in group sentiment have led us to upgrade our opinion on this out of favor group," says analyst Jason Steward, boosting his outlook on the entire agency mREIT space to positive.
    • Also standing to benefit, says Steward, is CYS Investments (CYS -0.4%).
    • ETFs: MORL, REM, MORT, LMBS
    • Previously: Nomura gets bullish on mortgage REITs (Aug. 12)
    | 14 Comments
  • Wed, Aug. 12, 4:31 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.08%
    • Payable Sept. 8; for shareholders of record Aug. 31; ex-div Aug. 27.
    | 7 Comments
  • Wed, Aug. 12, 9:47 AM
    • Damage to book value in Q2 is priced in and unlikely to recur based on his bank's outlook for interest rates, says analyst Brock Vandervliet, upgrading Annaly Capital (NLY +0.5%) and American Capital Agency (AGNC +1%) to Buy from Neutral, with price targets for both lifted by $2 to $12 and $23, respectively.
    • Vandervliet also takes note of the sizable buybacks now at work for the two.
    • ETFs: MORL, REM, MORT, LMBS
    | 17 Comments
  • Tue, Aug. 11, 12:59 PM
    • The Fed may be determined to hike rates, but deflationary signals are everywhere, with Beijing the latest government to acknowledge such with its devaluation overnight.
    • Crude oil has taken out a new six-year low, tumbling another 4% to $43.15 per barrel, and copper's 3% decline has brought it to a fresh six-year low. The grains are all down by 2% or more, but gold is marginally higher.
    • The major U.S. averages are down more than 1%, and Europe fell 1.5% today.
    • The 10-year Treasury yield is lower by a full ten basis points to 2.13%.
    • Leading the heavily discounted mREIT sector higher are Annaly Capital (NLY +1.1%), American Capital Agency (AGNC +1.3%), CYS Investments (CYS +1.2%), New York Mortgage (NYMT +1.6%), Hatteras Financial (HTS +1.3%), Capstead (CMO +1%), Anworth (ANH +1.4%), Dynex Capital (DX +2.6%), and AG Mortgage (MITT +1.6%).
    • ETFs: MORL, REM, MORT, LMBS
    • In equity REITs: National Retail (NNN +1.2%), Equity Residential (EQR +1.5%), AvalonBay (AVB +1.2%), General Growth (GGP +1.9%), Kimco (KIM +1.4%), Whitestone REIT (WSR +2.9%), Washington Real Estate (WRE +1.2%), Hospitality Properties (HPT +2.3%), Chamber Street (CSG +1.1%).
    • ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
    | 21 Comments
  • Wed, Jul. 29, 11:35 AM
    | Comment!
  • Tue, Jul. 28, 9:52 AM
    • Investors take a least a small hiatus from selling the mortgage REITs after last night's clunker of an earnings report from American Capital Agency (AGNC +2%).
    • Book value fell by 6% during Q2, with higher rates, widening MBS spreads, and faster prepayments making for an ugly combination.
    • The company, however, entered Q3 with its lowest leverage since the financial crisis, giving it the firepower to buy assets on the cheap. At the close yesterday, the stock was selling for a 22% discount to June 30 book value. At some point, the bad news is priced in?
    • The earnings call is set for 11 ET.
    • Annaly Capital (NLY +1.6%), CYS Investments (CYS +0.8%), Western Asset (WMC +1.2%), New York Mortgage (NYMT +0.5%).
    • ETFs: MORL, REM, MORT, LMBS
    | 13 Comments
  • Mon, Jul. 27, 4:16 PM
    • Q2 net spread and dollar roll income per share of $0.60 down from $0.70 in Q1. Q2 dividends were $0.62 per share (current quarterly run rate is $0.60).
    • Book value per share of $24 slips from $25.53 three months earlier. Today's close of $18.73 is a 22% discount to June 30 book. Economic loss of 3.6% for the quarter, with a $0.62 dividend being more than offset by the $1.53 decline in book value.
    • 4M shares, or 1% of the float, repurchased during Q2 at average price of $19.86 each.
    • "At risk" leverage slips 20 basis points to 6.1x.
    • Net interest spread of 1.74% vs. 1.64% in Q1. Including "catch up" premium amortization benefit/cost, net interest spread of 1.5% vs. 1.53% in Q1. 11.6% CPR in Q2 vs. 8.4% a quarter earlier.
    • Management notes book value was hit not only by higher rates but significant widening in agency MBS spreads. The company is hunkered down, entering Q3 with its lowest leverage since 2008 - thus giving it the opportunity to be buyers on weakness.
    • Earnings call tomorrow at 11 ET
    • Previously: American Capital Agency misses by $0.03 (July 27)
    • AGNC -0.5% premarket
    | 25 Comments
  • Mon, Jul. 27, 4:03 PM
    | 6 Comments
  • Sun, Jul. 26, 5:35 PM
  • Thu, Jul. 23, 1:17 PM
    • CYS Investments last night reported a big drop in book value as the effect of sharply higher rates more than offset the company's hedges. Core income failed to cover the dividend as prepayments also rose.
    • The stock today is down 2.6% and trading at more than a 20% discount to book value.
    • Earlier this week, Hatteras also reported a decline in income and fall in book value.
    • Sector giants Annaly Capital (NLY -0.5%) and American Capital Agency (AGNC -0.7%) are performing the best today. Armour Residential (ARR -1.8%), Chimera Investment (CIM -0.8%), Invesco Mortgage (IVR -1.1%), New York Mortgage (NYMT -1.2%), Western Asset Mortgage (WMC -1%), Anworth Mortgage (ANH -1.2%), Arlington Asset (AI -2.3%), Ellington Residential (EARN -2.1%), Dynex Capital (DX -0.8%)
    • ETFs: MORL, REM, MORT, LMBS
    | 32 Comments
  • Mon, Jul. 13, 4:04 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.74%
    • Payable Aug. 7; for shareholders of record July 31; ex-div July 29.
    | 6 Comments
  • Tue, Jul. 7, 8:03 AM
    • A sell-sider finally steps into the carnage in the mortgage REIT sector. Upgraded to Outperform from Market Perform: Annaly Capital (NYSE:NLY), American Capital Agency (NASDAQ:AGNC), PennyMac Mortgage (NYSE:PMT), American Capital Mortgage (NASDAQ:MTGE), AG Mortgage (NYSE:MITT), MFA Financial (NYSE:MFA), CYS Investments (NYSE:CYS), Capstead Mortgage (NYSE:CMO), and Chimera Investment (NYSE:CIM).
    • NLY +0.6%, AGNC +0.5%, MTGE +1.9%, MFA +0.9% premarket
    • ETFs: MORL, REM, MORT, LMBS
    | 76 Comments
  • Mon, Jun. 29, 11:24 AM
    • The smallest players are being hit hardest today, with Orchid Island Capital (ORC -8.9%), Five Oaks Investment (OAKS -3.4%), and Cherry Hill Mortgage <<CHM>I> leading the sector lower. Arlington Asset (AI -1.3%), Apollo Residential (AMTG -1.2%), and Javelin Mortgage (JMI -0.8%) belong in that group as well.
    • Sector bigwigs Annaly Capital (NLY -0.1%), American Capital Agency (AGNC -0.1%), Two Harbors (TWO -0.2%),and  MFA Financial (MFA -0.3%) are holding up better.
    • Previously: Rates plunge on Greece gets ready to default (June 29)
    • ETFs: MORL, REM, MORT, LMBS
    | 46 Comments
  • Fri, Jun. 26, 3:31 PM
    • Equity REITs are mostly being spared any punishment today, but mortgage REITs are hitting multi-year lows across the board as the 10-year U.S. Treasury yield climbs seven basis points to 2.48%.
    • Annaly Capital (NLY -4.7%) hasn't seen a price this low since Alan Greenspan was nearing the end of his rate hike cycle in 2000. American Capital Agency (AGNC -3.7%) is at its lowest price since the bottom of the financial crisis.
    • Armour Residential (ARR -2.9%), Two Harbors (TWO -4.5%), Chimera Investment (CIM -4.8%), CYS Investments (CYS -3.7%), American Capital Mortgage (MTGE -5.4%), Capstead Mortgage (CMO -4.5%), Anworth Mortgage (ANH -4.3%), AG Mortgage (MITT -3.3%), Ellington Residential (EARN -5.3%), Orchid Island (ORC -3.9%).
    • ETFs: MORL, REM, MORT, LMBS
    | 128 Comments
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Company Description
American Capital Agency Corp is a real estate investment trust that invests exclusively in residential mortgage pass-through securities and collateralized mortgage obligations on a leveraged basis.
Sector: Financial
Country: United States